As government-ordered forensic probe into the financial transactions of the troubled Ghana National Petroleum Corporation (GNPC) continues, the Ghanaian Chronicle reports in Accra of the missing of an amount of 3 million dollars.
According to the paper, it follows “discrepancies between an amount of $8.121, 000.00 million Societe Generale gave to Mr. Tsatsu Tsikata, former Chief Executive of the Corporation and what he actually reported to his Board headed by Dr. J.L.S. Abbey, Director of CEPA.
Chronicle, which has been very critical of the Corporation and its ex-CEO, says it gathered and cross-referenced reports that foul play is strongly suspected in the debacle over the transaction between Tsikata and the French Bank and there are suggestions that Tsikata more than anybody at GNPC including Mr. Fabian (Marketing Head) and Mr. Abankwa (Legal Head) involved in the transactions should know where the money should be.
Dr. Abbey yesterday (September 18) confirmed earlier Chronicle reports that his Board had never given any approval to the ex-GNPC boss or any clearance to go and enter into any derivatives contract with Societe Generale Bank that has now cost taxpayers over $20million (originally $40million, but settled at under $20million).
“The whole thing was an illegal transaction, it was illegal.”
Dr. Abbey was being queried by the Chronicle to explain why Mr. Tsikata when in fact declared only $5 million to them; evidence available showed that SG had actually paid out to him exactly $8,121,874.00 as premium from a sum of $15million sort of credit (putting it in layman’s language) that he was allowed to access in the costly and dangerous derivatives deal he was engaged in.
Chronicle says, its enquiries indicated that by the end of July 1998, when the GNPC and SG agreed to close their transactions because Tsatsu’s difficulties in meeting his margin calls (meeting his overdraft limit) with its associated costs, the books were closed with a deficit of $32, 120, 663.00 standing against him.
The premium collected by Tsatsu (which may be likened to an overdraft in this instance) was $8,121,874.00 making the total indebtedness to be $40,181,115.00.
Dr. Abbey explained that GNPC as a corporate body was not in business with the Paris-based Societe Generale Bank, as the derivatives deal was not authorised by the Board, a point which raised questions about the decision to settle with SG.
He said he did not understand why the French Bank should be involved in an authorised transaction, adding that the bank is as guilty as the other party in the deal.
“GNPC is not in business and therefore the liability is not GNPC’s or the government’s” he asserted “I am all for the forensic audit of GNPC to go the full hog.”
Dr. Abbey failed to speak directly on the $3million shortfall though records show that in a memorandum to the Board explaining himself to them, he indicated that nearly $5million in premium income had been paid to GNPC and acknowledged that the total amount due SG was $40,181,115.00.
“The puzzle in what is considered to be a fraudulent activity is how both GNPC and SG agreed that the debt stock is $40million, but differ on what was the premium received”
